The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is ChampionX (CHX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
ChampionX is a member of our Construction group, which includes 88 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ChampionX is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CHX's full-year earnings has moved 3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CHX has gained about 5.3% so far this year. In comparison, Construction companies have returned an average of -8%. This means that ChampionX is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Cavco (CVCO). The stock is up 13.5% year-to-date.
In Cavco's case, the consensus EPS estimate for the current year increased 21.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ChampionX belongs to the Engineering - R and D Services industry, which includes 17 individual stocks and currently sits at #86 in the Zacks Industry Rank. This group has lost an average of 19% so far this year, so CHX is performing better in this area.
On the other hand, Cavco belongs to the Building Products - Mobile Homes and RV Builders industry. This 5-stock industry is currently ranked #17. The industry has moved -2% year to date.
Investors interested in the Construction sector may want to keep a close eye on ChampionX and Cavco as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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